2017 Australian Tax Changes For Working Holiday Visa’s(All You Need To Know)

2017 Australian Tax Changes For Working Holiday Visa’s(All You Need To Know)

Stephen Palmer

I moved to Australia in 2013 and created this blog to help Irish people living in Australia. 10 million visitors later it now has evolved into a job board, flight company and offers support with many services Irish people need when they move to Australia.
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2017 Australian Tax Changes for Australian Working Holidaymakers:

You might have heard that a few changes were made in the last budget that affects how working holidaymakers in Australia pay tax.

Don’t panic(just yet) there is still hope. We cover every scenario and situation based on the new Australian tax changes with help from Taxback.com who have verified and provided a lot of this information for you.

The main changes you need to be concerned about if you’re on a 417 working holiday or 462 work and holiday visa are those in regards to income tax and superannuation.

If you’re on a different visa then you won’t be affected by these changes.

Finishing work – payment summary:

Only income earned from 1 January 2017 is eligible for the new working holidaymaker tax rates, so you’ll receive a separate payment summary for any income from this date.

Your employer will also report the details from the payment summary to the tax office.

If you worked for the same employer before and after 1 January 2017, they will give you two payment summaries.

Where income earned before 1 January 2017 is taxed at ordinary rates, any income you earn with a registered employer from 1 January 2017 is taxed at 15%.

If you didn’t qualify as a resident before 1 January 2017, you would have paid 32.5% per cent income tax from your first dollar earned until this date. Previously some working holidaymakers would declare themselves as resident after 6 months in Australia, but the new laws are preventing you from doing so.

FAQs on the 2017 Australian tax changes

Q. What if I just say I’m a resident even if I’m not? What would actually happen?

A. Well, first of all that would be morally and legally wrong. Your tax return is a legal document.

There are financial and maybe even visa consequences too.

The ATO can get information from the Department of Immigration and Border Protection, which will “help identify people who are on a 417/462 visa and ensure that their tax is assessed correctly”.

So there’s a greater chance they will find you if you provide inaccurate information about your residency status.

The ATO also says that if you don’t pay the right amount of tax, you’ll owe them even more money.

Or, as they more politely put it, you “can be charged interest on any shortfall, and may be subject to other penalties”.

Q. If I skip out on my tax bill, could I jeopardise any future visas?

A. There appears to be a risk. An Immigration Department spokeswoman told Australian radio station ABC Rural that it’s up to the ATO to decide how to penalise people who lie on their tax returns.

The spokeswoman also noted that if you’re suspected of engaging in fraud or other criminal activity, then the department can consider whether there are grounds to refuse a future visa application.

If you’re still in Australia, the department could cancel your visa and kick you out.

If that happens, you could also be prevented from returning to Australia for a period of time.

Still got questions?

If you need help with your Australian taxes, you can reach out to a certified tax preparer like Taxback.com who help thousands of working holidaymakers get their tax back every year.

They can also send you a free, no-obligation estimate of any possible refund and help you claim your superannuation.

We hope that you are a lot clearer after reading this on the 2017 Australian tax changes.

Pretty sure this won’t be the end of it and we will be sure to update you as soon as any changes come in.

Thanks for reading these 2017 Australian tax changes and be sure to share + comment below.

Stephen Palmer

I moved to Australia in 2013 and created this blog to help Irish people living in Australia. 10 million visitors later it now has evolved into a job board, flight company and offers support with many services Irish people need when they move to Australia.
Pop over to my resources page(irisharoundoz.com/resources) to find every service and product I recommend.
Thanks for stopping by and hope to see you here again.